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Pricing Strategy

Pricing is a key element in your business and marketing strategy that is affected by and impacts your product design, channel, and promotional activities. Before setting price, imaging and document technology vendors need to answer a variety of critical questions, including:

• What are the key market and product segments?
• Should we have different pricing for different market segments?
• What is the demand curve or price elasticity for product or service?
• What impact will pricing have on usage?
• How will our competitors react?
• What is our cost structure at different volume levels?
• How should we bundle our products and services?
• What does our discount structure need to be through the channels?
• What are the short- and long-term objectives of our pricing strategy?

Answering these questions and properly setting pricing requires objective research and analysis. Your pricing strategy shouldn’t come from the factory or from your dealer/sales organization, though they provide important input. InfoTrends has the skills and industry knowledge to help you establish an effective pricing plan. Our consultants can conduct the necessary research and analysis to:

• Segment the market by critical customer and product attributes
• Assess current demand levels by price/performance points
• Benchmark competing products and services
• Create a price elasticity model
• Examine channel discounts by tiers and volumes
• Assess your brand equity or premium
• Quantify the impact on recurring revenue streams
• Identify opportunities for versioning and bundling to achieve optimal pricing by
  market segment

InfoTrends specializes in working with document and imaging technology vendors to develop pricing strategies. We will provide you with specific recommendations based on objective, in-depth research and our extensive industry experience. We will factor in the market realities and your business goals to come up with an optimal pricing strategy.

Contact InfoTrends to discuss how we can help you develop a more effective pricing strategy